This afternoon the ASX Limited (ASX: ASX) announced the immediate resignation of its chief executive Elmer Funke Kupper, amidst news reports of an investigation by the Australian Federal Police (AFP) into Tabcorp Holding Limited’s (ASX: TAH) business dealings in Cambodia in 2009/2010.

Mr Funke Kupper was chief executive of Tabcorp over the period under investigation and has been chief executive of the ASX since 6 October 2011.

Tabcorp also made an announcement to the ASX this afternoon stating that it was aware of the investigations and that Mr Funke Kupper has requested a leave of absence from a role on the Tabcorp board, while the AFP continues its investigations.

According to news reports in the Fairfax press the AFP are investigating a $200,000 payment made by Tabcorp to family members of Cambodian prime minister Hun Sen. The payment was allegedly made at a time when Tabcorp was looking to gain potentially new business opportunities in Cambodia.

The fact that Mr Funke Kupper has been effectively forced into quitting his role as head of the ASX suggests the investigation has the potential to escalate, with Tabcorp’s activities likely to be under the microscope.

In 2015 Tabcorp had civil proceedings brought against it by the Australian anti-money laundering regulator AUSTRAC over a separate matter. However, today’s news of alleged illegal payments looks like it could cause potentially more serious problems. Tabcorp investors then would do well to follow this story closely.

The technology that's going to REPLACE the Internet is already here...

Dollar for dollar, insiders are calling it one of the biggest new markets in the history of modern business... NOW is the time to get in on the hush-hush industry that could be poised for growth of over 4,463%+ by 2020... And the 1 ASX stock that stands to grow YOUR money right alongside it! Simply click here to learn its name.

HOT OFF THE PRESSES: Motley Fool’s #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.

Motley Fool contributor Tom Richardson has no position in any stocks mentioned.

You can find Tom on Twitter @tommyr345

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.